JBG SMITH Properties

The following risk factor updates and supplements the risk factors contained in our Annual Report.

We may be unable to anticipate or fail to adequately mitigate against increasingly sophisticated methods to engage in illegal or fraudulent activities against us.

Despite any defensive measures we take to manage threats to our business, our risk and exposure to potential illegal or fraudulent schemes remain heightened because of, among other things, the evolving nature of such threats in light of advances in artificial intelligence, new and sophisticated methods used by criminals including phishing, social engineering or other illicit acts, or other events or developments that we may be unable to anticipate or fail to adequately mitigate. For example, in the first quarter of 2026, we were the victim of a criminal fraud scheme involving AI-enabled employee impersonation, which resulted in fraudulently induced wire transfers. While we do not expect the fraud to have a material impact on our business, we have borne, and will continue to bear additional expenses in connection with the remediation and investigation of the fraud. Fraudulent activities committed against us could disrupt our operations, have an adverse effect on our financial results, subject us to substantial legal proceedings and potential liability, result in a material loss of business and/or significantly harm our reputation.